Hulu closes gap with Netflix in the US
Disney-owned streaming service has added 4m new subscribers so far this year
Hulu has added nearly 4m paying subscribers so far this year, as the Disney-owned streaming company gains ground on Netflix in the US.
The company, whose original shows include The Handmaid’s Tale, now has 26.8m paying subscribers, it revealed ahead of its annual presentation to advertisers on Wednesday. Including free trials, it has 28m customers, it said.
This remains a far cry from rival Netflix, which dominates video streaming with 149m subscribers globally. Hulu operates in the US only.
But in the US, Hulu’s growth has been rapid while Netflix has slowed. Netflix added 1.7m subscribers in the US in the first three months of 2019, according to its most recent earnings report. Hulu added 3.8m in the first four months of the year.
The event for advertisers on Wednesday was part of a season of glitzy presentations known as upfronts in which the major US media companies vie to lure ad dollars to their TV channels and streaming services.
Hulu brought out stars including George Clooney, Reese Witherspoon, Kate McKinnon, Margot Robbie, Mindy Kaling and Chrissy Teigen, underscoring the growing clout of streaming companies in Hollywood.
Mr Clooney joked it was his first upfront in 25 years, alluding to his role on the hit show ER in the Nineties, while thanking Hulu for running reruns of the show.
Hulu unveiled new shows that it hopes will convince advertisers of its cultural cachet and relevance with younger viewers.
It has commissioned two television series based on Disney’s Marvel characters. It is also working with Vox Media’s production studio to make cooking shows with David Chang and Chrissy Teigen. And it gave the green light to a series starring Kate McKinnon as Elizabeth Holmes of Theranos.
Hulu, which was conceived as a joint venture among traditional media companies getting into the streaming business for the first time, now has only two owners: Disney, with a 60 per cent stake, and Comcast, with 30 per cent. Disney chief Bob Iger has said he may be interested in taking full control of the company.
AT&T sold its 10 per cent stake in Hulu back to the company last month in a deal that pegged the value of Hulu at $15bn. Netflix’s market capitalisation is over $160bn.
Disney executives said at an investor day last month that they expect Hulu to grow to between 40m and 60m subscribers by 2024. Hulu is lossmaking, and Disney does not expect it to become profitable until 2023 or 2024.